Ministry plans to expand renewable energy generation

The ministry of new and renewable energy (MNRE) Sunday said it is in the process of preparing an energy legislation to expand power generation capacity through a judicious mix of conventional and non-conventional sources.

"The ministry is also preparing a scale up plan for the development of solar (power) generation in the next five years," it said in a statement.

The announcement follows Friday's tabling of amendments to the Electricity Act, 2003, in the Lok Sabha, initiating the second phase of reforms in the power sector.

"The aim of the government will be to substantially augment electricity generation through a judicious mix of conventional and non-conventional sources. It will expand the national solar mission and connect households and industries with gas-grids," it said.

Through the Electricity (Amendment) Bill, 2014, the government proposes to introduce stricter penalties for failing to meet renewable purchase obligation (RPO) targets.

Under the RPO system, power distribution companies in states have to mandatorily purchase electricity generated through renewable energy sources during the year.

The proposed changes will also introduce the renewable generation obligation (RGO), which will make it compulsory for thermal power producers to generate electricity through renewables.

Outlining the government's steps in six months to boost clean energy, the ministry said these include providing support of Rs.1000 crore to public sector units to set up over 1,000 MW grid-connected solar photovoltaic projects, and decisions to set up 25 solar parks of 500 MW capacity each and 300 MW of solar projects by defence and paramilitary establishments.

Power and New and Renewable Energy Minister Piyush Goyal Saturday said the government is aiming at two trillion units of electricity generation by 2020.

"There will be a renewed focus on renewables with generation going up from the current 53 billion units to 300 billion units in five years," Goyal said in an event.

The share of renewable energy is currently just over 5 percent of the total base made up of one trillion units of electricity.

The ministry said it will organise the Global Renewable Energy Investment Promotion meet (RE-INVEST) Feb 15-17, 2015, with industry associations as a follow-up to the Make in India initiative launched by Prime Minister Narendra Modi.